Investor Presentation

Transcription

1 Investor Presentation

2 SEK s mission and vision SEK s mission is to ensure access to sustainable financial solutions for the Swedish export industry on commercial terms. SEK s vision is to strengthen the competitiveness of Swedish exporters and help create employment and sustainable growth in Sweden. SEK is 100% owned by the Swedish government. 2

3 Kingdom of Sweden Population: 10 million Surface: km 2 Capital: Language: Political system: Status in Europe: Currency: Stockholm Swedish, but English widely spoken Parliamentary democracy Inside EU, outside Euro Swedish Krona 3

4 Economy of Sweden Public debt to GDP Facts Rating: AAA/Aaa/Aaa GDP growth Q (qoq/yoy): 0.5% /4.2% GDP growth % GDP (2015): USD bn* GDP per capita: USD * 5 year CDS spreads Unemployment (August 2016): 7.2%** CPI/CPIF*** yoy (August 2016): 1.1%/1.4% Current Repo Rate: -0.50% *USD/SEK average 2015, ** seasonal adjusted, % of labour force *** CPIF = CPI with fixed mortgage rates Source: SCB, IMF, Macrobond 4

5 Swedish exports large part of GDP and well diversified Exports and imports Key export goods Auto, 18% Machinery, 15% Consumer goods, 13% IT & telecom, 11% Pulp & paper, 10% Materials, 9% Construction, 8% Health care, 8% Energy, 6% 5 Source: SCB, Macrobond As of Dec 31, 2015

6 6 Well-known exporters

7 SEK has a complementary role in the market Our offering provides a complement to bank and capital market finance for exporters that want a range of different financing sources. SEK creates client value on market terms through its strong international network, extensive experience and expertise in export finance. 7

8 Our services Corporate lending Corporate lending for Swedish exporters Different currencies End-Customer Finance Export finance Project finance Customer finance tailored end-customer finance Trade finance receivables discounting Administration of the Swedish system for statesupported export credits. 8

9 The Swedish export credit system Exporter concludes the export contract Bank arranges the export credit The Swedish Export Credits Guarantee Board (EKN) insures risks SEK provides financing 9

10 Ratings AA+ (stable) The ratings on SEK reflect our opinion that there is an extremely high likelihood of extraordinary support for the company from Sweden (AAA/Stable/A-1+). Its capital and earnings position is very strong in our opinion. SEK is an important pillar for the success of Swedish exporters. October 2, 2014 Aa1 (stable) We view the probability of support as high in light of SEK s strategic public role and its 100% ownership by the Kingdom of Sweden, which reinforces the expectation of support in a distress scenario. The owner s support was clearly demonstrated through a direct capital injection and the creation of dedicated borrowing facilities to allow SEK to continue to fulfil its essential public policy role in March 24,

11 Sustainability framework Owner instruction Sustainability reporting Sustainability targets and strategies OECD Common Approaches OECD Convention on Combating Bribery IFC performance standards UN Global Compact UN Guidelines on Business and Human Rights 11

12 Funding and liquidity: No refinancing risk USD bn Loan facility with the Swedish National Debt Office Borrowing total, including shareholder's funds Lending with first possible pre-payment, including the CIRR-system As of June 30, 2016

13 Assets Total USD 37.0 bn Derivatives and other assets Liquidity Placements Derivatives and other liabilities Agreed but undisbursed credits Credit Portfolio Senior securities Issued Subordinated capital Equity Liabilities & equity 13 As of June 30, 2016

14 Credit portfolio Credit portolio Demand for financing from the Swedish export industry increased dramatically during the financial crisis The Swedish government heavily increased SEK s lending capacity during the financial crisis SEK secured access to financing for the Swedish exporters USD bn New credits accepted, as of December 31, USD bn Gross exposure Net exposure 14 As of June 30, 2016

15 Counterparty exposures & risk mitigation Counterparty wxposures and ris mitigation Export credit agency guarantees Bank guarantees Credit derivatives Collateral agreements Insurance company guarantees 70% 60% 50% 40% 30% 20% 10% 0% Corporates Financial institutions incl. ABS and covered bonds Sovereigns (incl. local governments) Gross exposure Net exposure 15 As of June 30, 2016

16 Liquidity portfolio Investment profile Average duration of new investments: 7 months Maximum maturity: 18 months Minimum Rating: A Maturing profile of SEK s liquidity portfolio 100% 90% 80% 70% 60% 50% 30 Jun Dec % 30% 20% 10% 0% M 1 year 1 year < M 3 years M > 3 years 16 As of June 30, 2016

17 Funding: flexible and diversified Multiple funding programmes in all major currencies Funding in local currencies Responsive to investor needs An experienced benchmark issuer New funding by region, Q1-Q (Q1-Q2 2015) North America 30.8% (22.9%) Europe excl. Nordic countries 23.5% (10.4%) Japan 21.3% (63.9%) Non-Japan Asia 14.4% (2.8%) Middle East/Africa 5.8% (0%) Latin America 2.0% (0%) Nordic countries 1.6% (0%) Oceania 0.5% (0%) Risk management policy: No currency risk Very limited interest rate risk All structured notes are hedged New funding by structure, Q1-Q (Q1-Q2 2015) Plain Vanilla 74.0% (19.6%) Equity linked 17.4% (64.8%) FX linked 3.3% (7.4%) Commodity linked 3.1% (5.5%) IR linked 2.1% (0%) Power Reverse Dual Currency 0.2% (2.7%) 17 As of June 30, 2016

18 Diversified funding, by structure Title Q1-Q Plain Vanilla Equity linked Commodity linked FX linked IR linked Power Reverse Dual Currency Fund linked Subordinated debt 18 As of June 30, 2016

19 Diversified funding, by region Snior securities issued Title Q1-Q Japan North America Non-Japan Asia Europe excl. Nordic countries Middle East/Africa Nordic countries Latin America Oceania 19 As of June 30, 2016

20 Most impressive sovereign, supranational or agency borrower 2013 Most impressive sovereign, supranational or agency borrower 2014 Most impressive MTN borrower 2013 Global Issuer of the Year Landmark Deal JPY31bn ETF-Linked Note Most impressive MTN borrower

21 Capitalization and Profitability Equity Common Equity Tier 1 capital ratio of 20.2% (actual) as of June 30, 2016 Leverage ratio of 5.0% (actual) as of June 30, % 10% 8% Return on equity (IFRS) Dividend policy: 30% of profit after tax to our owner Return on equity: 4.3% 6% 4% 2% 0% Q As of June 30, 2016

22 About SEK Owner: Swedish government, 100% Mission: Primary task: To ensure access to financial solutions for the Swedish export industry on commercial terms Financing of export credits Credit rating: S&P: AA+ /Stable/A-1+ Moody s: Aa1/Stable/P-1 Established: 1962 Financial information at June 30, 2016 Total assets USD 37.0bn Lending USD 24.5bn Common Equity Tier 1 capital ratio 20.2% After-tax return on equity 4.3% 22 As of June 30, 2016